FSA hands JP Morgan record fine
by Richard Kilner
Story link: FSA hands JP Morgan record fine
J P Morgan Securities Ltd (JPMSL) has been handed a £33.3m fine from the Financial Services Authority (FSA) for failure to protect client money through proper segregation.
Under FSA regulations client and company money must be kept in segregated accounts, to protect client money in the event of insolvency.
The error occurred between 2002 and 2009, following the merger of JPMorgan and Chase, a mistake which went undetected for the best part of a decade and earnt the firm a record fine from the FSA.
Margaret Cole, FSA director of enforcement and financial crime, has said that the fine’s size reflects the amount of client money involved ($1.9bn).
Cole went on to say that businesses need to stick to the rules, adding that several similar cases were forthcoming.